Porsche 2007 Annual Report Download - page 35

Finances
The significant rise in profit at Porsche was in part attributable to the
positive effects of cash settled options which make Porsche participate
in changes in the stock exchange value of VW shares.
New records set
The Porsche Group once again closed the 2007/08 fiscal year with record
figures. The key financial indicators unit sales, sales revenue and especially
earnings improved once again, even compared to the extremely high prior
year figures. The significant increase in the balance sheet total of the Porsche
Group by 22.245 billion Euro to 45.577 billion Euro is mainly attributable to
the increase in derivative financial instruments (mainly stock price hedges),
cash and cash equivalents and securities as well as the shares in Volkswagen
AG accounted for using the equity method.
Capital expenditures on intangible assets, property, plant and equipment
and leased assets came to 1.362 billion Euro, following 1.205 billion Euro the
year before. Of this amount, 574 million Euro went on vehicles leased by
Porsche’s financial services companies, compared to 626 million Euro in the
prior year. The investment in Volkswagen AG, which was consolidated at
equity, stood at 30.3 percent of the ordinary shares as of the balance sheet
date 31 July 2008. The mandatory offer which had to be made to all Volks-
wagen shareholders after the 30-percent threshold was exceeded entailed an
investment in shares of 22 million Euro. To secure the takeover bid and in pre-
paration for additional purchases of Volkswagen AG shares, a hedge trans-
action was also entered into. Amortization and depreciation increased in the re-
porting year to 569 million Euro compared to 532 million Euro in the prior year.
As of the balance sheet date, the Porsche Group reported fixed assets of
11.168 billion Euro compared to 9.760 billion Euro in the preceding fiscal year.
Although the value of fixed assets has risen, their share in the balance sheet
total dropped to 25 percent (prior year: 42 percent). The Group’s fixed
assets were wholly covered by equity. After 97 percent in the prior year, this
figure had increased to 151 percent at the end of the 2007/08 fiscal year.
Inventories rose from 625 million Euro to 757 million Euro. Trade receivables
accounted for 267 million Euro compared to 266 million Euro the year before.
Receivables from financial services dropped slightly from 1.782 billion Euro
in the prior year to 1.773 billion Euro. Other receivables and assets amounting
to 20.032 billion Euro (prior year: 5.890 billion Euro) contained the financial
instruments that were employed; these mainly consisted of currency, interest
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